Question 2: Put-call parity You have an option dealer who deals in non-publicly traded options. One of your clients want

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Question 2: Put-call parity You have an option dealer who deals in non-publicly traded options. One of your clients want

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Question 2 Put Call Parity You Have An Option Dealer Who Deals In Non Publicly Traded Options One Of Your Clients Want 1
Question 2 Put Call Parity You Have An Option Dealer Who Deals In Non Publicly Traded Options One Of Your Clients Want 1 (28 KiB) Viewed 31 times
Question 2: Put-call parity You have an option dealer who deals in non-publicly traded options. One of your clients wants to purchase a one year call option on a HAL computer systems share with a strike price of $20. Another dealer is willing to write a one year put option on a HAL computer systems share with a strike price of $20 and sell you the put option for a price of $3.50. If HAL's current share price is $18, and the risk-free rate is 6% per annum, what is the price you can charge for the call option, using put-call parity?
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